Corning Incorporated (GLW - Free Report) reported healthy third-quarter 2020 results, wherein the top and the bottom lines beat the respective Zacks Consensus Estimate.
Bottom Line
On a GAAP basis, net income in the quarter was $427 million or 48 cents per share compared with $337 million or 38 cents per share in the year-ago quarter. The improvement was primarily driven by a net transaction-related gain of $498 million.
Core net income came in at $380 million or 43 cents per share compared with $397 million or 44 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 5 cents, delivering a positive surprise of 13.2%.
Top Line
Quarterly GAAP net sales increased 2.3% year over year to $3,001 million, led by Specialty Materials and Display Technologies. Core sales grew to $3,007 million from $2,969 million in the year-ago quarter. The top line surpassed the consensus estimate of $2,921 million.
Segment Results
Net sales in Optical Communications declined 9.7% year over year to $909 million. This was due to the decline in the passive optical market. The segment’s net income was $115 million compared with $127 million in the prior-year quarter.
Net sales in Display Technologies were $827 million compared with $793 million in the prior-year quarter, supported by higher glass volume. The segment’s net income was $196 million compared with $185 million in the year-ago quarter.
Specialty Materials’ net sales were up 23.1% year over year to $570 million. The upside was driven by demand for premium glasses, Corning’s new glass-ceramic product (Ceramic Shield) and strength in its products for the IT and wearable markets. The segment’s net income was $146 million compared with $92 million in the prior-year quarter.
Environmental Technologies’ net sales fell 4.5% year over year to $379 million. This was a result of vehicle manufacturers’ suspended production in key markets. The segment’s net income was $69 million compared with $79 million in the prior-year quarter.
Net sales in Life Sciences were down 13% year over year to $223 million. This was due to research lab closures in EMEA and North America. The segment’s net income declined to $28 million from $41 million reported in the prior-year quarter.
Other Details
Quarterly cost of sales increased 4.3% year over year to $2,000 million. Gross profit slipped to $1,001 million from $1,017 million. Core gross profit was $1,130 million compared with $1,156 million recorded in the prior-year quarter, with respective margins of 37.6% and 38.9%. Operating income was $257 million compared with $365 million in the prior-year quarter.
Cash Flow & Liquidity
In the first nine months of 2020, Corning generated $1,406 million of net cash from operating activities compared with $1,013 million in the prior-year period. As of Sep 30, the company had $2,514 million in cash and cash equivalents with $7,822 million of long-term debt.
Zacks Rank & Stocks to Consider
Corning has a Zacks Rank #3 (Hold), at present.
Some better-ranked stocks in the broader industry are Viasat (VSAT - Free Report) , Viavi Solutions (VIAV - Free Report) and Harmonic (HLIT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viasat delivered a trailing four-quarter positive earnings surprise of 361.3%, on average.
Viavi delivered a trailing four-quarter positive earnings surprise of 17.5%, on average.
Harmonic delivered a trailing four-quarter positive earnings surprise of 4.4%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
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Corning Incorporated (GLW - Free Report) reported healthy third-quarter 2020 results, wherein the top and the bottom lines beat the respective Zacks Consensus Estimate.
Bottom Line
On a GAAP basis, net income in the quarter was $427 million or 48 cents per share compared with $337 million or 38 cents per share in the year-ago quarter. The improvement was primarily driven by a net transaction-related gain of $498 million.
Core net income came in at $380 million or 43 cents per share compared with $397 million or 44 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 5 cents, delivering a positive surprise of 13.2%.
Top Line
Quarterly GAAP net sales increased 2.3% year over year to $3,001 million, led by Specialty Materials and Display Technologies. Core sales grew to $3,007 million from $2,969 million in the year-ago quarter. The top line surpassed the consensus estimate of $2,921 million.
Segment Results
Net sales in Optical Communications declined 9.7% year over year to $909 million. This was due to the decline in the passive optical market. The segment’s net income was $115 million compared with $127 million in the prior-year quarter.
Net sales in Display Technologies were $827 million compared with $793 million in the prior-year quarter, supported by higher glass volume. The segment’s net income was $196 million compared with $185 million in the year-ago quarter.
Specialty Materials’ net sales were up 23.1% year over year to $570 million. The upside was driven by demand for premium glasses, Corning’s new glass-ceramic product (Ceramic Shield) and strength in its products for the IT and wearable markets. The segment’s net income was $146 million compared with $92 million in the prior-year quarter.
Environmental Technologies’ net sales fell 4.5% year over year to $379 million. This was a result of vehicle manufacturers’ suspended production in key markets. The segment’s net income was $69 million compared with $79 million in the prior-year quarter.
Net sales in Life Sciences were down 13% year over year to $223 million. This was due to research lab closures in EMEA and North America. The segment’s net income declined to $28 million from $41 million reported in the prior-year quarter.
Other Details
Quarterly cost of sales increased 4.3% year over year to $2,000 million. Gross profit slipped to $1,001 million from $1,017 million. Core gross profit was $1,130 million compared with $1,156 million recorded in the prior-year quarter, with respective margins of 37.6% and 38.9%. Operating income was $257 million compared with $365 million in the prior-year quarter.
Cash Flow & Liquidity
In the first nine months of 2020, Corning generated $1,406 million of net cash from operating activities compared with $1,013 million in the prior-year period. As of Sep 30, the company had $2,514 million in cash and cash equivalents with $7,822 million of long-term debt.
Zacks Rank & Stocks to Consider
Corning has a Zacks Rank #3 (Hold), at present.
Some better-ranked stocks in the broader industry are Viasat (VSAT - Free Report) , Viavi Solutions (VIAV - Free Report) and Harmonic (HLIT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viasat delivered a trailing four-quarter positive earnings surprise of 361.3%, on average.
Viavi delivered a trailing four-quarter positive earnings surprise of 17.5%, on average.
Harmonic delivered a trailing four-quarter positive earnings surprise of 4.4%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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